Fiesta Mart was co-founded by Donald Bonham and O. C. Mendenhall in Houston in 1972. Prior to co-founding Fiesta, Bonham had lived in several countries in Latin America, where he worked helping set up supermarkets and food distribution systems. Once back in the U.S., Bonham recognized the potential of a supermarket for Hispanics, especially for immigrants who were nostalgic for foods and products from their home countries. He partnered with O. C. Mendenhall, an experienced grocer from Oklahoma, in opening on the near north side of Houston a small grocery store that catered to Hispanics.